INVITE-ONLY SCRIPT
Institutional Liquidity and Price Action Concepts [AlgoAlpha]
Updated
π Introducing the Institutional Liquidity and Price Action Conceptsβ’ (ILPAC), a comprehensive toolkit developed by AlgoAlpha as part of our Premium Collection. This All-in-One indicator offers a robust approach to understanding price action and liquidity, empowering traders with hyper customizable features to tailor their analysis to their specific trading strategies.
Designed with efficiency and compactness in mind, the script shows Price action and liquidity through four methods: Market Structure, Liquidity Heatmap, Trend Lines, and FOMO Bubbles. Additionally, the script also includes a fully customizable interface, to match each individual's trading style. By utilizing a blend of advanced algorithms and customizable parameters, Institutional Liquidity and Price Action Conceptsβ’ (ILPAC) provides traders with a vast array of trading strategies ranging from high frequency scalping to timing better entries on long-term swing and investing positions.
The ILPACβ’ can be used with or without other AlgoAlpha Premium Collection indicators as this indicator has been designed to be able to act as a standalone toolkit.
Let's delve into the key features and functionalities of this versatile indicator:
π―Key Features (summary):
Market Structure Analysis:
Liquidity Heatmap:
Trend Lines:
FOMO Bubbles:
π―Key Features (in-depth):
The Market Structure component within ILPACβ’ shows the underlying trend of the market using swing high and lows and is purely price action based. Higher Highs(HH), Higher Lows(HL) labels generally indicate an uptrend and Lower Highs(LH) and Lower Lows(LL) indicate a downtrend. The trend of the market is also determined by Change of Characters (CHoCH) and Break of Structure patterns (BOS). The Market Structure component marks out all these automatically and colours the bars on your chart for easy visualisation of trend.
The Liquidity Heatmap component within ILPACβ’ visualizes areas of high and low liquidity in the market. It identifies zones where liquidity is concentrated not only at specific price levels but also over time, giving the user a 3 Dimensional view of liquidity. The heatmap colours represent different levels of liquidity, making it easy to see where large volumes of orders may exist. This component helps traders understand the liquidity landscape and make informed decisions based on potential support and resistance levels.
The Trend Lines component within ILPACβ’ automatically draws trend lines based on historical price data. It identifies significant highs and lows, connecting them to form trend lines that highlight the overall market direction as well as give breakout signals as shown in the image below. The component also includes a noise filter to reduce false signals and ensure only valid trend breakouts are displayed. Customizable colour settings allow traders to personalize the visual representation of trend lines on their charts.
The FOMO Bubbles component within ILPACβ’ identifies periods of market activity driven by Fear of Missing Out (FOMO). By analysing price action and volume, it highlights bubbles where traders are likely entering positions impulsively. These bubbles are displayed on the chart with customizable colours, providing a visual cue for potential overbought or oversold conditions. This component helps traders recognize and potentially capitalize on market exuberance or panic.
π―Usage Examples:
At its core, the components within ILPACβ’ were designed to operate with each other as a form of confluence and robust analysis. Typically, Price action components such as the Market Structure and Trend Lines can be used for entries while the Liquidity components like FOMO Bubbles and the Heatmap can be used to find exit points. Here are some examples of how they can be used.
π―Conclusion:
The Institutional Liquidity and Price Action Conceptsβ’ (ILPAC) indicator by AlgoAlpha is a powerful tool for traders, offering in-depth market insights through its Market Structure, Liquidity Heatmap, Trend Lines, and FOMO Bubbles components. By integrating Price Action based analysis with Liquidity analysis, ILPACβ’ boasts a superior design for the confluence between its components, using Price Action components for entry opportunities and Liquidity based components for exit opportunities. With its highly customizable settings, this indicator caters to all trading styles, from scalping to long-term investing. By providing clear visualizations and automatic trend and liquidity detection, ILPACβ’ empowers traders to make informed decisions, enhancing their trading strategies and improving overall market understanding.
Designed with efficiency and compactness in mind, the script shows Price action and liquidity through four methods: Market Structure, Liquidity Heatmap, Trend Lines, and FOMO Bubbles. Additionally, the script also includes a fully customizable interface, to match each individual's trading style. By utilizing a blend of advanced algorithms and customizable parameters, Institutional Liquidity and Price Action Conceptsβ’ (ILPAC) provides traders with a vast array of trading strategies ranging from high frequency scalping to timing better entries on long-term swing and investing positions.
The ILPACβ’ can be used with or without other AlgoAlpha Premium Collection indicators as this indicator has been designed to be able to act as a standalone toolkit.
Let's delve into the key features and functionalities of this versatile indicator:
π―Key Features (summary):
Market Structure Analysis:
- Customizable time-horizon
- BOS confirmation methods
- Adjustable CHoCH/BOS line styles
- Swing point highlighting
- Color customization
Liquidity Heatmap:
- Configurable look-back period
- Adjustable resolution
- Customizable scale colors
Trend Lines:
- Look-back period settings
- Noise filter factor
- Trend line signals with color options
FOMO Bubbles:
- Configurable look-back period
- Adjustable noise filter factor
- Customizable bubble colors
π―Key Features (in-depth):
The Market Structure component within ILPACβ’ shows the underlying trend of the market using swing high and lows and is purely price action based. Higher Highs(HH), Higher Lows(HL) labels generally indicate an uptrend and Lower Highs(LH) and Lower Lows(LL) indicate a downtrend. The trend of the market is also determined by Change of Characters (CHoCH) and Break of Structure patterns (BOS). The Market Structure component marks out all these automatically and colours the bars on your chart for easy visualisation of trend.
The Liquidity Heatmap component within ILPACβ’ visualizes areas of high and low liquidity in the market. It identifies zones where liquidity is concentrated not only at specific price levels but also over time, giving the user a 3 Dimensional view of liquidity. The heatmap colours represent different levels of liquidity, making it easy to see where large volumes of orders may exist. This component helps traders understand the liquidity landscape and make informed decisions based on potential support and resistance levels.
The Trend Lines component within ILPACβ’ automatically draws trend lines based on historical price data. It identifies significant highs and lows, connecting them to form trend lines that highlight the overall market direction as well as give breakout signals as shown in the image below. The component also includes a noise filter to reduce false signals and ensure only valid trend breakouts are displayed. Customizable colour settings allow traders to personalize the visual representation of trend lines on their charts.
The FOMO Bubbles component within ILPACβ’ identifies periods of market activity driven by Fear of Missing Out (FOMO). By analysing price action and volume, it highlights bubbles where traders are likely entering positions impulsively. These bubbles are displayed on the chart with customizable colours, providing a visual cue for potential overbought or oversold conditions. This component helps traders recognize and potentially capitalize on market exuberance or panic.
π―Usage Examples:
At its core, the components within ILPACβ’ were designed to operate with each other as a form of confluence and robust analysis. Typically, Price action components such as the Market Structure and Trend Lines can be used for entries while the Liquidity components like FOMO Bubbles and the Heatmap can be used to find exit points. Here are some examples of how they can be used.
- Trend Trading
Using the Market Structure component, enter a trade during a CHoCH and set TP at key areas of liquidity using the heatmap. Users can also choose to enter into a BOS which is an indication of a trend continuation. - Reversal Trading
Using the Liquidity Heatmap to find areas of liquidity for possible reversals, wait for a rejection from a liquidity zone and use the Trend Line Breakout signals as confluence for an entry. Exits can be set at liquidity zones or using FOMO Bubbles as take profit signals.
(These are just examples for reference, the ILPACβ’ offers significantly more possibilities for customisation and fine tuning of your trading strategy.)
π―Conclusion:
The Institutional Liquidity and Price Action Conceptsβ’ (ILPAC) indicator by AlgoAlpha is a powerful tool for traders, offering in-depth market insights through its Market Structure, Liquidity Heatmap, Trend Lines, and FOMO Bubbles components. By integrating Price Action based analysis with Liquidity analysis, ILPACβ’ boasts a superior design for the confluence between its components, using Price Action components for entry opportunities and Liquidity based components for exit opportunities. With its highly customizable settings, this indicator caters to all trading styles, from scalping to long-term investing. By providing clear visualizations and automatic trend and liquidity detection, ILPACβ’ empowers traders to make informed decisions, enhancing their trading strategies and improving overall market understanding.
Release Notes
Added FOMO Bubbles V2Release Notes
Updated the inputs arrangement to add a new "master dashboard" to quickly enable/disable components.Invite-only script
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Author's instructions
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π¨Get premium: algoalpha.io
πGet FREE signals: discord.gg/xCmqTVRexz
βDo you have feedback or indicator ideas? Join our server to tell us about it!
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